Tesla is no stranger to volatility, but this time the storm may be different. Once a Wall Street darling, the company now finds itself in what some analysts call a “full-blown crisis.” Longtime Tesla bull Dan Ives from Wedbush just dropped a bomb: slashing his price target on Tesla stock from $550 to $315—a staggering 43% cut. The reasons? A toxic combination of geopolitical tension, economic risk, and, most critically, Elon Musk’s divisive public persona.
The immediate pressure comes from newly imposed auto tariffs under the Trump administration. While all automakers are affected, Tesla’s reliance on Chinese-made battery components puts it in a particularly vulnerable spot. Tariffs make parts more expensive and production more complex. And it’s not just a supply chain issue—Tesla’s biggest growth market, China, is turning its back.
Sales in China, especially for the locally-made EVs, dropped by over 11% in March. While Model Y deliveries got a boost from refreshed versions, it wasn’t enough to counter the overall downturn. Tesla’s global deliveries for Q1 also came in far below expectations—336,681 units versus an estimate of 390,000—marking the worst quarterly performance since mid-2022.
However, what worries Ives more than numbers is perception. Tesla, he argues, is no longer seen as just a car company. It’s a global political symbol—and not in a good way. As Musk entangles himself in U.S. politics and cozies up to Trump, international consumers—especially in Europe and China—are increasingly distancing themselves from the Tesla brand.
The fallout? According to Ives, Tesla may have already lost 10% of its potential global customer base—up to 20% in Europe—all due to Musk’s personal choices and public stances. Protests at showrooms, viral backlash, and growing nationalism abroad are pushing buyers toward homegrown alternatives like BYD, Nio, and XPeng.
To make matters worse, Tesla’s stock has dropped over 43% year-to-date, wiping billions off its market value. Confidence among investors, once unwavering, is eroding rapidly. Analysts are calling for Musk to refocus on leadership within the company and pull back from political distractions before the damage becomes irreversible.
Money Magnet News Viewpoint:
Tesla’s real challenge isn’t innovation or competition—it’s Elon Musk himself. Visionary or not, a CEO can’t afford to alienate global markets in the age of politicized brands. A company built on disruption now faces disruption from within.
💬 Can Tesla survive if Musk refuses to separate business from politics? Would you still buy a Tesla, or has the brand lost its luster?
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